LeanSigma Strategy Key Driver for Continued Cultural

Change and Enhanced Performance

Tedd C. Simmons, Ph.D.

VP, LeanSigma and Chief Learning Officer

Beginning the Lean JourneyLean I

•Demand Triggers•Continuous Flow•Visual Control•5S Techniques•Pull Systems•Kanban Signals

•Kaizen - Continuous Improvement

•TAKT Time •Theory Of Constraints•Single Piece Flow•Setup Reduction•TPM•Mistake Proofing - Poka Yoke•Cellularization•Problem Solving Methods•Process / Value Stream Mapping

Introducing the basic lean tools

Starting LeanInitial Introduction

– Guest Speaker at Plant Managers Meeting (Oct 99)– 10 Participants in the Lean Mfg. Leadership Institute (Univ. of KY) (Nov

99)– 15 Participants in the Lean Mfg.. Trainer Certification Program (Nov 99)

• Altoona• Cass City• Jackson• Lawrenceburg• Monticello• Montoursville• Piedras Negras

Pilot Programs– Altoona - had done numerous Kaizen sessions and plant reorganization– Montoursville - test site for the 4-day implementation (Jan ‘00)

Introducing Lean to Operations

Phase 1 Lean Manufacturing Initiative– Management Overview (3 Days)– Facilitator Training (2 Days)

Phase 2 Plant Roll-outs– Beta Site– Plant Roll-out Schedule

Phase 3 Continuous Implementation– Additional Lean Training– Tools Training– Functional and Business Team Involvement

Lean I - Rollout Continuation

2000:– 2500 North American Operations associates trained

– Delivered 8 sessions at HH to “Train the Trainer”

– Facilitators in turn delivered 152 rollouts at the plants

2001:– Goal is 100% of Operations associates exposed to Lean rollout

– Goal all facilities complete – All operations associates trained

Expanding the Lean JourneyLean II

Purposes of Lean II

• Leverage successes• Improve focus on purposeful projects

– Data driven– More top down– Impact the business NOW e.g.

• Reduce scrap• Reduce rejections/improve first pass yield• Improve OEE• Improve usage control• Reduce indirect labor

• Increase Lean skillset

Purposes of Lean II

• Better understand the manufacturing strategy– Stage 4 Manufacturing Excellence– In an OLPC environment– Cellularization as a primary means

• Tie to specific plant / business team objectives

– Learn lessons well– Apply with high energy– Teach with enthusiasm– Implement with urgency

Purposes of Lean II

• Looking for “Jonah’s”

Expanding the Lean JourneySix Sigma

•Process Capability•CP / CPK

•Box Plots•Factorial Analysis•ANOM•ANOVA•FMEA•Histograms•Taguchi

•Voice of the Customer•Quality Function Deployment

•House of Quality•Measurement System Analysis

•Gage R&R•Five Points of View•Trend Analysis•Hypothesis Testing

•t and Z tests•Correlation Analysis•Shewhart Charts•Design of Experiments•Cause & Effect Matrices•Interaction Charts

Process Variability

Basic Lean tools eliminate unnecessary processes…but additional tools were required to radically improve reliability of the remaining value add processes

The Toolset

Six Sigma Tools Added - 2002

Six Sigma training launched April, 2002

LeanSigma has delivered: Total training costs $1.07 Million Total Savings over $12 Million for the initial projects

– 6 Sigma/process variation tools added to the Lean toolbox• DMAIC process is the approved framework to be used - ALWAYS!

Begin use of the term LeanSigma

– Drive radical improvement through… Focus on eliminating costs of poor quality

High energy and commitment

Use of full toolset

Use of Lean Teams

Data driven problem elimination

20

Why LeanSigma?

It’s time now to put the Process Control into OLPC!

Doesn’t make sense to increase velocity of unnecessary or unreliable processes

Doesn’t make sense to drive six sigma process control on unnecessary processes

Eliminating causes of delays / STOPS on the shop floor is critical to Lean Thinking…

And requires additional tools

Initiative Timeline

200120001999 2003 2004 2005

Introduction of Lean ToolsAsia Pacific

Six SigmaTools Added

Second Europe Benchmarking trip

to US

North America Benchmarking trip to Europe

LeanSigma e-Learning Launched

First Europe Benchmarking

to US

Green Belt Training Launched

in Asia Pacific

Introduction of Lean Tools

Europe

Lean IICells

Lean I begins in

Asia PAcific

Lean IRollout

2002

First NA Black Belts Certified

First NAGreen Belt Certified

Transforming the Way We Work

Our LeanSigma Culture

Critical levers• Common Language• Consistent Metrics• Committed Leadership• Certified Black Belts• Certified Green Belts• Actively use DMAIC Process

LeanSigma Business Focus• Simplification of internal processes• Radically improve productivity• Proactive and systematically solve problems• Excellence in customer satisfaction• Positively Impact the entire value stream including suppliers and customers

LeanSigma Culture• Priority focus on the customer• Take pride in your work• Exhibit ethical behavior at all times• Always look for safer and better ways• Be a good steward of company assets

LeanSigma culture begins with how we treat each other ---

• mutual respect• OLPC• Collaborative Problem Solving• shared success

--- and manifests itself in what our customers experience, our customer being...

• Fellow associates• End users• Shareholders

The Culture: Operator-Led Process Control

Hourly Associates…

Involved and take accountability for their work

All salaried and indirect labor associates understand their role is to support the direct labor operator!

Fewer supervisors who coach and facilitate

Quality at the source

Work in teams, mostly self-directed

Are proactive and data-driven problem solvers

OLPCOLPC

Understanding Stage 4 Manufacturing Excellence

Stage 1 Minimize manufacturing’s negative potential: “internally neutral”

Stage 2 Achieve parity with competitors: “externally neutral”

Stage 3 Provide credible support to the business strategy: “internally supportive”

Stage 4 Pursue a manufacturing-based

competitive advantage: “externally supportive”

The Path:

Excellence built on the 12 Manufacturing

Principles... which are enabled with

Lean tools... applied with purpose and

with urgency.

OLPC Environment - what does the shop floor look like?

Manufacturing Principles

1.) Safety

2.) Housekeeping

3.) Manufacturing Systems

4.) Preventive Maintenance

5.) Process Capability

6.) Product Quality

7.) Delivery Performance

8.) Visual Management

9.) Productivity

10.) Communications

11.) Training

LeanSigma LeadershipBlack Belt

The Mentoring Process

BB Goal – Support the ongoing development of LeanSigma Leaders

Define development needsMeasure establish critical criteriaAnalyze development progressImplement mentoring process regularlyControl skills learned

Better Trained LeanSigma Leaders

LeanSigma LeadershipLeanSigma Council

Plant LeanSigma Council• Champion – “Driver”

– Conduct monthly LeanSigma Council meeting

– Assign designated, Certified Blackbelt(s) to Council

– Assign Designated Council Contact to AME/Master Blackbelt(s)

• Blackbelt – “Engine”

– Manage Projects

– Mentor Blackbelt Candidates & Greenbelts

– Communicate with AME/Master Blackbelt(s)

• Greenbelt – “Drive-Train”

– Support BB’s and Lead Projects

TAKE OWNERSHIP!

LeanSigma Council(Structure to How Council Work)

3 BoldObjectives

TheoreticalUniverse ofOpportunity

Key BusinessObjectives

ProficiencyDatabase to

Match Resources

BB’s, GB’s andEngineering Staff

Projects

Track ProgressDMAIC & Using Tools

Expect Results

Provide SupportEliminate Roadblocks

DRIVE PROJECTS TO COMPLETION!